How do I handle a savings account in fund accounting?

Our church has a savings account. How do we handle this? Could it be considered a fund?

Comments for How do I handle a savings account in fund accounting?

How do I handle a savings account in the 5 fund spreadsheet package
by: slickron42

Thanks for the info, I kind of figured. Since the 5 fund spreadsheet package is income and expense, how would I document a savings account if I can?

Thanks

What a Fund is and is not
by: Vickey

A savings account is not a "fund". It is set up as an asset account in your chart of accounts (COA). An asset is a resource your church owns.

The Merriam-Webster dictionary defines "fund" as "a sum of money or other resources whose principal or interest is set apart for a specific objective."

Another definition that may help you visualize what a fund is: "an accounting entity that needs to be kept separate, having its own source(s) of income and its own expenses."

A good example of a fund is a "Building Fund" with donations going in and building expenses/purchases going out.

So you could have a savings account set up exclusively for your Building Fund; however, you would set up the savings account as an asset account in your accounting and the fund is usually set up as an equity account.

How you track that fund depends on your accounting software.

See more on funds and fund accounting in my "Basic Fund Accounting" ebook in the Church Accounting Package found by clicking the "Products" navigation link at the top of this page or coping and pasting this link in your browser: https://www.freechurchaccounting.com/church_accounting_package.html

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